The Australian dollar currency is one of the most watched in trading today (Thursday) as it is expected to be influenced by the reading of Chinese economic data that has been published in the Asian session just now.
According to the report, the world's second largest economy experienced deflation for 2 consecutive months with the consumer price index (CPI) data reading contracting to -0.8% lower than forecast.
This further increases concerns about the slow economic development that will continue.
China as Australia's main trading partner, Chinese economic data will influence the movement of the Aussie dollar currency.
However, as observed on the chart of the AUD/USD currency pair in the Asian session earlier, the price did not show a significant impact.
Towards the end of the Asian session and continuing into the beginning of the European session, prices began to show signs of a downward trend.
After hovering at the 0.65300 level, the price has dropped slightly to test the 1-hour Moving Average 50 (MA50) support line on the AUD/USD chart.
A break lower would be a bearish signal for the price heading towards the 0.65000 concentration level.
The price risks falling lower below that level before testing the lows hit earlier in the week, around 0.64700.
However, if the price manages to rise again, the resistance at 0.65400 reached on Wednesday yesterday will be tested once again.
The price successfully overcoming the resistance has the potential to extend the rise up to the 0.66000 high level.
